Following Voyager Digital’s bankruptcy filing in the first week of July, the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve Board today issued a joint letter to the company requesting that Voyager’s FDIC claims be stopped and terminated. The FDIC letter explains that Voyager’s FDIC claims are false and misleading, and the entity prohibits anyone from “representing or implying that uninsured deposits are insured.”
FDIC insists Voyager Digital issued misleading and false federal deposit claims
On July 28, 2022, the Federal Reserve and the FDIC sent a letter to public company Voyager Digital Ltd. (TSE: VOYG). The letter alleges that the bankrupt Voyager misled investors about its involvement in FDIC deposit insurance, which the company is accused of violating the Federal Deposit Insurance Act.
“The FDIC and the Board of Governors of the Federal Reserve System have reason to believe that Voyager Digital, LLC and its related entities, through its officers, directors and employees, have made false and misleading statements, directly or by implication, regarding Voyager’s deposit insurance status, in violation of 12 USC § 1828(a)(4),” the letter to Voyager details.
The FDIC details Voyager making false and misleading statements on its website, mobile app, and social media, implying that “Voyager itself is FDIC-insured,” “customers investing using Voyager’s cryptocurrency platform will be FDIC-insured,” and “the FDIC will ensure that Customers are protected from Voyager’s own failure.” The FDIC’s letter to Voyager emphasizes that these claims are false. The letter reads:
These statements are false and misleading, and based on the information we have to date, it appears that these statements may be misleading and relied upon by customers who hold funds with Voyager and have no immediate access to their funds.
Voyager is now authorized to rectify this issue by removing any false statement in any way that implies Voyager is insured by the FDIC. Voyager has two business days to meet the government’s request. If Voyager believes the FDIC’s claims are inaccurate, the company can attempt to prove it with the information and documentation provided.
The FDIC wants a “prompt response” or it will have to “take further action, as appropriate, for the above or any other violation of law or regulation, or unsafe or unsound banking practices.”
What do you think of the FDIC’s letter to Voyager Digital alleging that the company made false and misleading statements that Voyager is FDIC-insured? Let us know what you think about this topic in the comments section below.
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